Streaming services represented the largest share of the global recorded music market in 2017, as the market grew by 8.1% to $17.3bn.

New IFPI stats have revealed that global recorded music industry revenues grew by 8.1% to $17.3bn last year. This is the third year of consecutive growth for the business and the biggest growth rate since 2007.

Total streaming revenues increased by 41.1%, becoming the single largest revenue source for the first time ever, representing a 38.2% share of the $17.4bn annual total. Streaming services generated $6.6bn in total last year. Digital revenues now account for over half (54%) of the global recorded music market.

By the end of 2017, there were 176 million users with paid subscription accounts globally, with 64 million having joined a service during the year.

In contrast, physical music revenue fell 5.4% to $5.2bn, whilst download revenue dropped 20.5% to $2.8bn. Physical music revenues represented 30.1% of the market, whilst downloads made up 16.2%.

In reflection of the news, the report stated:

“This renewed growth is a result of record companies’ ongoing investment, not only in artists, but also in digital innovation that is enriching fans’ experiences and harnessing technology such as voice controlled home speakers and much more. Even beyond their constant efforts to break and nurture artists, music companies have worked to foster growth in developing music markets, in particular by creating engaging ways for fans to access music on multiple services and platforms”.

With around 45% of artists on Spotify not associated with a major label, Instrumental’s music scouting platform is cutting through the noise.

The growth in the streaming market, both globally and in the US, represents a shift in the relationship between the artist and music fan. It also reflects growing investment in the user experience associated with music consumption, as developments of streaming services drive a battle between providers. With such huge figures considered, it is important to step back from the macro-scale and view the streaming market as a huge space for music discovery.

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